An Annuity (also known as a Lifetime Annuity) converts your pension fund into a pension income paid for the rest of your life. As you approach retirement, your pension provider will write to you with details of your fund and how it can be used to buy an annuity.

Rather than buying an annuity from your existing pension provider, the Open Market Option lets you shop around and approach other providers to find the best rate available.

Most people with a Personal Pension, Stakeholder Pension, AVC or FSAVC scheme, Retirement Annuity Contract, Section 32 Policy, or Occupational Money Purchase scheme can buy an annuity. If you’ve contracted out of the additional State Pension, that portion must buy a protected rights annuity, which must be a joint-life annuity paying 50% to a spouse or civil partner if you have one.

You can normally start taking pension benefits from age 55, rising to 57 in 2028. You don’t have to stop working to do this, and some people choose to delay taking an income to build a larger pension for later in life.

Your income depends on factors including how much of your fund you take as tax-free cash, the annuity rate offered, the type of annuity chosen, your age, and your health and lifestyle — smokers or those with certain health conditions may receive a higher income.

Options include Single Life or Joint Life cover, Level or Escalating income, adding a Guaranteed Period, or Value Protection. Read our full guide to Annuity Options →

Typically 4 to 6 weeks, though this can vary depending on the company managing your existing pension fund.

Our annuity comparison quote is free with no obligation to proceed. If you go ahead, we receive a commission payment directly from the provider you choose.

The Financial Services Compensation Scheme (FSCS) covers 100% of the first £2,000 of annuity income and 90% of any amount above that.

Consolidation can make your pensions easier to manage and may reduce charges. However, some older pensions include valuable guarantees, such as a Guaranteed Annuity Rate, that could be lost on transfer, so this is always checked before any recommendation is made.

Bringing pensions together can simplify your paperwork, give you a clearer picture of your total retirement savings, and may provide access to a wider range of investment options through a larger combined fund.

Potentially, yes. Some pensions include exit penalties, enhanced tax-free cash entitlements, or guaranteed rates that don’t transfer across. This is why pension consolidation is provided on a fully advised basis with us.

Generally, combining pensions shouldn’t directly affect your tax position, though your annual allowance for future contributions still applies regardless of how many pensions you hold.

Drawdown lets you keep your pension invested while taking an income directly from it, with no limit on how much or how little you withdraw each year.

You can usually take up to 25% of your pension fund as a tax-free lump sum, with the remainder available as a taxable income whenever you choose to draw it.

Yes, but taking a taxable income from Drawdown usually triggers the Money Purchase Annual Allowance, which significantly reduces how much you can contribute tax-efficiently afterwards. Taking only the tax-free lump sum doesn’t usually trigger this.

Your beneficiaries can usually continue Drawdown themselves, take the remaining fund as a lump sum, or use it to buy an annuity, depending on the scheme rules and your nominated beneficiaries.

Your fund stays invested, so its value can fall as well as rise, and withdrawing too much too soon could mean your money runs out earlier than expected. This is why Drawdown is offered on a fully advised basis.

A tax-efficient account that allows your investments to grow free of UK income and capital gains tax, within your annual ISA allowance. The value of investments can go down as well as up.

Collectives, such as unit trusts and OEICs, pool your money together with other investors to access a diversified range of assets, which can spread risk compared to holding individual shares directly.

Both are investment wrappers that can offer tax planning benefits for larger sums, with different tax treatments depending on where the bond is based. An adviser can explain which may suit your circumstances, particularly if you’ve used up other allowances.

This depends on your goals, how long you intend to invest for, and your personal comfort with seeing the value of your investments fluctuate. Our advisers assess this with you before recommending a suitable strategy.

Common approaches include gifting, setting up trusts, and certain investments that can fall outside your estate after a qualifying period. The right approach depends entirely on your circumstances and wishes.

Many strategies, such as gifting, rely on you surviving a number of years afterwards for the gift to fall outside your estate. The earlier you start planning, the more options remain available to you.

No, trusts themselves are not regulated by the Financial Conduct Authority, though the advice we give around using them as part of your wider planning is.

Yes, estate planning often connects closely with your wider investment strategy and retirement plans, so our advisers consider your full financial picture together rather than in isolation.